Saturday, March 20, 2010
Special Report:

$5,000 invested in each of Dan Ferris' picks since 2003 would be worth nearly a quarter million dollars today

Dear Reader,

70% of my current stock picks are winners. 

When you consider this, I think asking $1,000 for my advice is a steal. And normally, that's what I'd be doing right now.

But today, I'm trying something different. Today, I'm going to give you my top pick for 2008 – free in this letter.

Why?

Because I want you to see the kind of research and advice you'd get as one of my subscribers. And, ultimately, I want to prove to you that my advice is worth the price I ask for it.

Many of my subscribers already think so:

Paul Dickson, 78, used it to raise nearly half a million dollars recently. This note he sent tells the full story...

"Extreme retirement has helped to almost double my holdings in the past 2 ½ years, from $500,000 to $950,000. Thank you."

Wesley Calleran, from Ohio, has also taken advantage. He writes:

"I have probably achieved gains of about $250,000 from Dan's picks. As a group, these investments have about doubled during that same time period. Keep up the good work!"

Now I'd like to give you a look at exactly how I've been so successful...

What does that mean for investors? 

Possible 100% or greater gains...

For instance, I recommended international conglomerate Humboldt-Wedag (KDH) in August 2003 back when it was known as MFC Bancorp. 

At the time I knew it was selling for at least a half of what it was worth.  I recommended the stock around $11... but I knew it was worth more like $23, just because of its real assets...

But then the market figured out the stock was undervalued too... and it shot up to around $30, a 474% gain for us. And it's still going... 

How about Icahn Enterprises (IEP) - up over 500% in 3 years – back in 2004 I noted it was selling for much less than it was worth – another free money situation...

Or Posco ADR (PKX), a stock I picked two years ago that's up almost 200%:

The point is – if you buy a good company when it's cheap, the market will eventually make a correction – and you'll see what I mean by free money...

That's why I picked these companies...and right now, my favorite stock pick for January looks like it will make the same kinds of gains in the near future – but first...my free pick, as promised:

I don't know about you, but I want to own any company that is the largest seller in any category, especially when it's cheap...

Which is why I'm so excited about this pick: it's the biggest seller in many categories (as I'll show you in a second), and it's extremely cheap right now – close to 30% cheaper than it should be. 

Consider the following...

My favorite stock right now is America's largest jeweler and grocer, but it's not Zales or Whole Foods.

It's also the largest magazine seller in the country – accounting for 20% of magazine sales last year – but it's not Borders.

It sells the most toys and DVDs – but it's not Toys-R-Us or Best Buy...

And like the other stocks I've recommended over the past few years – it's selling for just a fraction of what it's really worth...

You see, this company is also the biggest retail store in America too – even bigger than Kmart, Target and Costco...

If you haven't guessed already, I'm talking about Wal-Mart (WMT).

I know... I know... Wal-Mart gets a bad rap.

Some people say Wal-Mart is "low-brow" (I say just don't shop there if you don't like the store). Others say Wal-Mart should give more employees health insurance (what they don't know is that Wal-Mart is one of the biggest health insurance providers in America... and makes it possible for millions of Americans to get prescriptions and other healthcare supplies, really cheap.).

Other people say Wal-Mart hurts "local" businesses (of course, what they fail to mention is that Wal-Mart saves nearly every American significant amounts of money, by making it cheaper to get the household goods we need.)

You can say what you want about Wal-Mart, but the simple facts are that it's the most successful business in America. It's going to be around... and will get even bigger... for decades to come.

And because of the current bad press, you have the opportunity to pick up America's best business...at a price I can almost guarantee you will never see again in your lifetime.

You know, most people don't remember, but something similar happened to McDonalds's a few years ago...

The company was getting killed in the press because people claimed McDonald's was making America fat. Well I don't know about you, but I don't pick up a the occasional Big Mac and fries to lose weight.

Did anyone really think that Americans were going to stop eating McDonalds? Were we all of a sudden going to become a nation of salad eaters? Of course not.

That's why people who picked up McDonald's shares roughly five years ago have made more than 270% gains... with one of the absolute best businesses in America.

Now... you have the same opportunity with Wal-Mart.

How much will you make if you buy it today?

No one can say for sure, but this company already has over 7,000 stores worldwide – and it plans to open 190 to 200 stores across the US within the next year and 170 new stores in each of the following three years.

Last year, it experienced 30% growth in China – and worldwide, Wal-Mart's international sales have grown at an average annual compounded rate of 27.4% per year for the past 7 years.

In terms of profit – it made more than $300 billion in revenue last year – 2nd only to Exxon. 

The point is, this is probably the most successful business in America today—and right now you have a once in a lifetime opportunity to buy it at a ridiculously cheap price.

That's why Wal-Mart is my favorite stock of 2008 and I think it has the greatest potential for huge gains in the coming months and years.

What else do I like right now?

Well... let me tell you a little about my most recent recommendation, which is also ridiculously undervalued. It's a great place to put your money over the next few years...

In today's corporate culture of stock options and accounting scandals, this third opportunity is a rare find:

A family-run business that's been consistently returning money to shareholders – on average, 16% a year since 1981 while regularly paying out dividends too.

On top of that incredible 27-year track record... over the next several months, they're essentially handing out "free money" to shareholders.

For every dollar you invest with this family, you're getting back $.25 in return. That might sound like a paltry sum, but the quarters quickly add up.

That's:

• $250 for every $1,000
• $1,000 in free money for every $5,000

How do I know this "free money" situation exists?  

Because this business trades on the stock market for roughly $24 billion.

But according to my calculations, the real underlying value of the business is roughly $33 billion.

 In other words, its real value is about 25% more than what the market is saying...

What accounts for the difference?

The company recently announced plans to get rid of one of its struggling divisions -- a significant drain on the business' bottom line – essentially "an overhang" that's been distorting the real value of this company in the eyes of the market...

Once this action takes place, the share price should rise by 20%. – no matter what else is taking place in the stock market

But don't just take my word for it. Barron's magazine recently came to the same conclusion:

"[This company] trades around $49, a marked discount to its estimated net asset value of $64 a share...[This] plan... could lift the stock about 20%."

Even better, owning a stake in this company also gives you an ideal "hedge" against the moody US stock market...

How so?

What began as a single small hotel in 1946 is now a multinational holding company....giving you exposure to seven vital sectors of the market, including energy (natural gas pipelines, oil drillers... you name it), real estate (a luxury hotel chain in North America), insurance...

Perhaps you can see why I call this free money situation the Ultimate "Hedge Fund." If the oil market, for instance, takes a downturn several months from now, which it does from time to time, you've got all of your other bases covered.

If this sounds like the kind of investment that you'd like to hear more about, here's what I recommend you do...

The Only Proven Way to Get Rich
in the Stock Market

If you are interested in getting the full details on the investment idea I've told you about today, I encourage you to try a subscription to Extreme Value.

When you do, you'll receive access to my newest research report, The Ultimate "Hedge Fund" – A Family Business That Gives Away Money.
 
But what else will you get?

Well, I am constantly on the hunt for great businesses selling at bargain basement prices.

Here are four I believe should be the cornerstone of any retirement portfolio right now...

The only 4 stocks you need
in your retirement account

I've tracked these stocks longer than any other group of companies. The trail started four years ago. And led from Baltimore to New York to Oregon.

During that time, I flew to 24 cities, interviewed countless CEOs, vice presidents, industry specialists and financial professionals.

I combed through tens of thousands of pages of annual reports... balance sheets and company accounts.

These four stocks are where your opportunity lies today. They are the four of the best stocks you can invest in for the next few years.

I believe they will go up for at least three years no matter what happens in the markets in the interim.

Unfortunately, I can't tell you anything more about these four companies. It would be unfair to my subscribers to give too much away.

But there is a way you can find out about these stocks for free. I put all my research about them into a report called, "The Only Four Stocks You Need to Retire On."

I'm making this report available now to readers willing to try my research service, Extreme Value.

You'll get everything you need to know... why these are the four best stocks... what price to pay... where to buy... when to add to your position and when to sell.

Let me tell you a little more about "Extreme Value" investing, so you can decide if you want to have a look at our work...

How to Beat the Stock Market by 189%

After five years, we've learned that the "Extreme Value" strategy offers the single best, safest way to make money.

Put simply: When you buy extreme-valued investments, you're buying the safest and most profitable stocks in the entire market.

This was proven in several studies – most notably in a 1992 study in The Journal of Finance, the most respected journal in its field.

The study was done by two well-known economists, Ken French and Eugene Fama (nominated for a Nobel Prize in Economics), who studied the prices and performance of every stock on the NYSE, the American Stock Exchange, and the Nasdaq from mid-1963 through 1990.

What they found was incredible...

The economists discovered that the cheapest 10% of stocks – "value" stocks that trade at a discount to their total assets – returned an average of 21.4% each year, for over 24 years.

This study also found that these kinds of safe, cheap stocks brought 189% higher returns per year than the markets – performing especially well during bear markets. Riskier, more expensive "growth" stocks, in the same time period, returned just 8%.
This proved that Value Stocks – the cheapest 10% of all stocks – make the most money in the stock market. Take a look:

But these two well-known economists weren't the only researchers who studied why this investment strategy has been so successful...

Forbes magazine has investigated it as well, reporting that: "Since 1965, [value stocks] have appreciated 13,315%, versus an increase of 767% for the Dow Jones industrial average."

But before I go any further, I need to make one thing clear...

Please Be Advised:

Extreme Value may not be right for you.

It's not for the average person.

Extreme Value readers tend to be hands-off, patient folk who want to invest for the long term... and expect staggering returns as a result.

In the majority of cases, that means putting your money into a company your broker may not know about... with little-to-no coverage on Wall Street... and then forgetting about it for months, even years, at a time...

For example: Back in 2002, I wrote to my readers about a small Pennsylvania-based company called Blair, that sells women's apparel.

Nobody had ever heard of it... But I was able to determine that Blair offered one of the best discounted stocks on the market...

Readers who held their nose and bought shares of this "boring" company more than doubled their money, for a 110.6% gain.

Another example: Our research team traveled to Florida and toured hundreds of acres of timberland owned by a company called Consolidated Tomoka. All told, it owns a total of 250,000 acres of trees, worth three times more than what it was selling for.

I wrote to my readers about this company immediately, saying: "The worst you can do is double your money." I was right. Since we added it to our Extreme Value portfolio, the stock is up 106%.

The point is – if you're looking for the "next hot trend" or hot new technology, I can tell you right now: Extreme Value is not for you.

That said, the companies I add to the Extreme Value portfolio all have one thing in common: If you get in early, they should all double or even triple your money – with extremely low risk.

But how can you be sure Extreme Value is right for you? Here's what I propose...

90 Days, 100% Risk Free

If you're interested in becoming a member of Extreme Value and finding out about the ultimate “hedge fund”, I encourage you to try a subscription today.  

That means you can learn all the details about the ultimate "hedge fund" stock I mentioned earlier and the four best stocks to retire on – and still have three months (90 days) to decide if you'd like to remain a member of our Extreme Value group.
If you decide that Extreme Value is not for you, simply contact us by phone, e-mail, or regular mail, and you'll receive a full refund, no questions asked.

Even if you wait until the very last day of your 90-day trial to cancel, you'll still receive 100% of your money back if you're not happy with our research. Our research reports are yours to keep, and use, as you please.

And should you decide to cancel after that, I'll give you a pro-rated refund on the remaining part of your subscription.

When you give Extreme Value a no-risk trial today, here's what you'll receive:

• Special report #1: The Ultimate "Hedge Fund" – A Family Business That Gives Away Money. This business has shown a 415% gain for its shareholders in just the past 8 years. If you were to buy 1,000 shares today, you could realistically have $96,545 within five years, perhaps more.
  
  
• Special report #2: The Only Four Stocks You Need to Retire On. If you're looking for stocks you can invest in and forget about for a decade or two, you need to read this report.
  
  
• 12 Monthly Extreme Value newsletter reports, delivered on the second Friday of each month. You'll receive a copy first by e-mail, then by regular mail too.
  
  
• Regular e-mail updates on the Extreme Value investment portfolio.
  
  
• Instant online access to our full 5-year archive of research  – where you'll learn all the details on some potentially very lucrative Extreme Value stocks that I still consider a Strong Buy.

So how much does one year of Extreme Value cost?

Before I get to that...

I have a confession to make...

There is more to my strategy than meets the eye.

Over the years, I have discovered information and techniques that not one in 100 investors know.

Porter recently asked me to reveal these prized secrets... so I put all the details into an all-inclusive report I call "The Secret."

If you're serious, this is your investment bible to keep on hand... to consult any time you come across a stock and wonder if it's a good investment or not.

With The Secret, you have all the tools to know for sure. For instance:

•  The one investment idea that ALWAYS makes money
•  The three things rich people do all day
•  The safest way to double your money every 24 months
•  How to master the fine art of sitting still
•  What no one ever tells you about selling stocks
•  And much more...

To ensure The Secret is kept confidential, I request that once you receive a copy, you keep the information to yourself.

You can access this report as soon as you sign on to the Extreme Value members-only website.

Best of all, you'll receive this report free of charge when you give Extreme Value a no-risk trial today.

So how much does a one-year subscription to Extreme Value cost?

Let me make something clear...

As part of my research, I subscribe to 23 different publications and services – including The Wall Street Journal... Barron's... Grant's... SmartMoney... Outstanding Investor Digest... Los Angeles Business Journal... Technology Review... Value Investor Insight... Fortune... Forbes... Schiff's Insurance Observer... and Spin-off Advisors' Spin-off Research...

You name it, I probably read it.

It costs $26,000 a year for all this material.

I travel extensively... When I wanted to research alternative energy a while back, I visited research labs and company headquarters all over the Northwest... in Washington, Oregon, Idaho, and California...

My subscribers include people like Mohnish Pabrai (an investment manager whose fund has grown from $1 million to $218 million and was featured in Forbes magazine as having out-performed Warren Buffett for four straight years. "I read Extreme Value every month," he told us recently).

Of course, all this research is what makes this job exciting...

...but also very expensive, month after month, and year after year.

So Extreme Value isn't cheap. But then, this isn't just another $99 newsletter written by a stock-picker who sits behind his computer clicking a mouse all day...

If that's what you're looking for, I'll tell you again: Extreme Value is probably not for you. I'm only interested in researching the kind of little-known investment opportunities you'll never hear about anywhere else... companies that could help you put your kid through college... pay for retirement... or buy a vacation home.

And as you might expect, finding those companies is why I spend so much time and energy on my research.

Extreme Value costs $1,000 for one full year.

I don't think you're going to see a better deal out there, especially not for the kind of gains you can expect from my picks. And the truth is, as you probably know, you get what you pay for when it comes to investment research.

Extreme Value readers agree...

"Is Extreme Value worth the $1,000 subscription price?" asked a potential subscriber on our online message board recently. "I am on a limited investment budget."

A paid-up subscriber wrote back...

"Extreme Value is willing to do the digging and analysis that no one else I've ever read is willing to do. [Dan's] picks comprise a "gone fishing" portfolio in itself. The [recommendations] possess so much value, and have already done so well, that I hope to pass them on to my children, should I never have a reason to sell them.
Is it worth $1,000? That's your call, but my subscription paid for itself handily. Hope this helps."

If you still aren't sure about subscribing, I strongly encourage you to sign up, and at least get the full details on The Ultimate "Hedge Fund" – A Family Business That Gives Away Money, and The Only Four Stocks You Need to Retire On.
You can read the reports, watch my research, and still have plenty of time (90 days) to decide whether or not his work is right for you.

I believe you'll be doing yourself a huge favor if you follow my published advice.

To subscribe, please Subscribe Now

Good investing,

Dan Ferris
Editor of Extreme Value

P.S. You may want to split the subscription cost into lower, quarterly payments. This option is $275, billed four times per year.

All numbers and returns as of January 11, 2008.

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